Insurance Coverage for Your Airbnb Rental Requires More Than a Homeowner’s Policy

If you’re using your homeowner’s insurance for your Airbnb rental, consider replacing it immediately. In general, most homeowner’s policies don’t cover short-term rentals. Because it is considered a business activity, your claim could be denied, or worse, your insurer could drop you off the plan. In some states, it’s even illegal to not have adequate rental insurance. To make sure that you are covered, you need a specific Airbnb home insurance policy that covers this type of business transaction. This is sometimes known as commercial insurance coverage. Commercial insurance policies help protect you in the unfortunate event your guest damages property or sues you for an injury they sustained during their stay.

The Airbnb Host Guarantee Isn’t Enough

Should someone get hurt while staying on your property, you are not likely going to be covered under the Airbnb Host Guarantee. Liability coverage, one of the most important aspects of the rental business, is not included in the Host Guarantee. In addition, there are numerous exceptions to the policy that make it difficult to receive reimbursement for property damage. Plus, if your property is damaged and can’t be rented out, your lost income is not covered by their plan. Airbnb rentals can be a great way to make a side or full-time income but without the right kind of coverage, you place yourself at a serious financial risk.